A Simple System That Keeps You Sane
You don’t need to track every coffee.
That’s the old way — exhausting, guilt-filled, and unsustainable.
I used to do that too — scrolling through my bank app, wondering how did this happen again?
There was always that tiny guilt after every little “treat.”
But one day, I realized: the goal isn’t to control every cent — it’s to feel calm and in charge.
You’ve already done the hardest part:
- You analyzed your spending and discovered where your money really goes.
- You visualized your goals, calculated your retirement needs, and defined what truly matters — your Love It List.
Now it’s time to modify your habits and change spending habits that no longer serve you. The Modify phase helps you change spending habits effortlessly through structure and automation.
Instead of tracking every coffee, you learn how to change spending habits using a calm, percentage-based system.
It’s about building a system that feels peaceful — where your money quietly takes care of what matters most.
From Awareness to Action
You already know:
- Your fixed costs — the expenses you must pay every month.
- Your debts — what you owe and how fast you want to pay it off.
- Your retirement goal — how much you’ll need for a comfortable future.
- Your money leaks — what you pay for but don’t really use (subscriptions, high insurance, inflated phone bills).
- Your Love It / Like It / Want It Lists — where you want your money to go and what can go.
That awareness now becomes a plan.
And the plan begins with percentages, not pennies.
Because you deserve to live without counting receipts — and still know that you’re building a future you can trust.
The Power of Percentages: A Calm Way to Change Spending Habits
Instead of chasing receipts or counting every euro, create a system that automatically divides your income into clear categories — inspired by the 50/30/20 rule, but customized to your life.
Here’s the idea:
- Fixed Costs (around 50–60%) – rent, bills, food, transportation, insurance.
- Future & Safety (10–20%) – savings, retirement funds, and debt repayment.
- Free Spending (15–30%) – your Love It List: the things that bring joy and meaning to your life.
These percentages can shift depending on your goals.
If your income is lower and your dream is travel or clothing, simply adjust your Love It List — choose local trips instead of international flights, second-hand fashion instead of luxury brands, or fewer shopping days instead of none.
When I started doing this, something changed — for the first time, I didn’t feel deprived.
I just felt… aligned.
I was still saying yes to what I love, only in a way that respected where I was financially.
You’re still living your values — just in a version that fits your current life.
Figure out what feels realistic and sustainable for you.
Related read: The 50/30/20 Rule Explained: A Simple Way to Start Managing Your Money
The System That Runs Itself – Automation
Let’s make money management automatic — so you can enjoy life, not manage spreadsheets.
I can’t describe the relief that came the first time everything paid itself.
The bills were handled. My savings grew quietly in the background.
And for the first time, I felt in control without trying to be in control.
Automation is what brings peace of mind.
It turns good intentions into consistent action — gently, quietly, in the background.
1. Retirement Account – Long-Term Growth
Open an ETF or investment account for retirement savings.
Check what retirement plans are available in your country — for example, the U.S. has 401(k), IRA, and Roth IRA.
This money isn’t touched; it’s your future freedom fund.
Set up an automatic monthly transfer right after payday, before you even see the money.
Related read: Visualize Your Financial Future: How to Set Money Goals That Feel Right
2. Emergency Fund – Easy Access
Create a separate savings account with immediate access — ideally a high-yield savings account.
This is for real emergencies: job loss, medical expenses, unexpected repairs — not for holidays or planned purchases.
When I first started my emergency fund, I put away just 50 euros a month.
It seemed small, but after a few months, the feeling of safety grew faster than the numbers in the account.
Once you reach your goal (usually 3–6 months of living expenses), redirect extra savings toward investments.
Set up an automatic transfer right after payday.
3. Fixed Costs Account
All your bills, rent, and regular payments go from this account.
Review your fixed costs regularly — is there anything you could reduce or cancel?
Set up standing orders so every bill is paid automatically.
Leave around 10% extra on this account to cover unexpected expenses.
It’s like breathing space — your system quietly absorbs the surprises that used to stress you out.
4. Free Spending Account
This is your joy account.
Every month, a set percentage of your income moves here automatically.
You don’t have to ask yourself, “Can I afford this?” — you already know how much is available for the month.
Spend it on what makes you happy and feel good about it — guilt-free.
When your free spending runs out, that’s your natural pause point.
It’s not punishment; it’s awareness. You’ll start to notice what truly matters — not by force, but by clarity.
5. Debt – Credit Card & Loan Payments
Debt is not your enemy — it’s just a commitment that needs structure.
Focus first on high-interest debts, such as credit cards or short-term loans.
When I finally set up automatic payments for my debt, it was like exhaling after holding my breath for years.
No more missed payments, no more fear. Just progress, quietly happening in the background.
- Decide on a realistic monthly amount you can consistently pay without jeopardizing your other priorities.
- Set up an automatic transfer right after payday so the payment happens before you can spend the money elsewhere.
This simple automation removes stress, builds discipline, and prevents missed payments — while slowly freeing you from the weight of debt.
Tip: If you have multiple loans, pay minimums on all but the one with the highest interest rate. Focus extra payments there until it’s cleared, then move to the next.
Automate to Liberate
Automation is not restriction — it’s freedom.
It lets you live with ease, knowing your future, bills, and security are already taken care of.
The moment your salary arrives, everything flows effortlessly:
- Your money automatically moves to the right accounts.
- Bills are paid on time.
- Savings grow quietly in the background.
- Debt gets paid off — little by little, automatically.
- And you enjoy what’s left — guilt-free.
That’s what Modify means: turning awareness into a structure that supports the life you want.
Related read: Analyze Your Finances: How to Understand Where Your Money Really Goes
Monthly & Quarterly “Money Dates”
Money isn’t a one-time project — it’s a relationship.
And like every good relationship, it needs time, attention, and honest conversations.
Monthly Money Date
Light a candle, make a tea, and take 30 minutes just for you.
Review your accounts, see if the system still fits, and celebrate your progress.
If you’re single — make it your ritual of self-respect.
If you’re in a relationship — do it together.
Talk about dreams, plans, and what’s working well.
Quarterly Review
Take a broader look — savings growth, debt reduction, spending patterns, and what’s ahead (holidays, home repairs, school).
If you share finances:
- Keep one joint account for shared goals (family or household).
- Keep individual free-spending accounts so each person maintains independence and freedom.
These money dates are not about judgment — they’re about connection, intention, and staying aligned.
Modify = Maintain
You’ve built awareness (Analyze), clarity (Visualize), and now structure (Modify).
This is where real financial peace begins — not from cutting out every coffee, but from knowing exactly where your money goes and why.
The Modify phase is where awareness becomes structure.
It’s how you finally change spending habits for good — without stress, guilt, or endless tracking.
“You don’t have to control every expense.
You just need a system that aligns with your values.”
When your money flows with purpose, life feels lighter.
And you finally start to see that financial freedom isn’t about having more — it’s about feeling safe, calm, and grateful for what you already have.
Next Step
Read the next article: Earn More Money on the Side: Simple Ways to Feel Secure and Free
Or download your free AVM Spending Plan Worksheet and set up your own percentage-based system today.
